Understanding Debicheck
Early in May 2021, the South African Reserve Bank implemented its DebiCheck payment system in an effort to further cut down on debit order fraud and abuse.
As a result, all new and renegotiated early debit orders have to be processed through DebiCheck, as an additional layer of protection for consumers. This significantly decreases the opportunities for debit order fraud.
DebiCheck is a secure debit order payment system that enables customers to electronically verify and approve their debit order details. This is done at the start of a debit order contract or if any changes are made to an existing contract.
How DebiCheck works
When the new debit order is set up for a customer, the debiting bank will send the customer an SMS to approve the new DebiCheck mandate.
After reviewing the contract details – the date, amount, and frequency of the debit – and ensuring everything is in order, they can electronically confirm the supplied DebiCheck mandate.
The debit order will only be processed through the DebiCheck system after the customer has confirmed their details. Should the customer reject the DebiCheck mandate, the debit order will not be processed as a DebiCheck. In addition, if the customer's confirmed contract details differ from the debit order collection request, their bank will not process the collection.
The debit bank must have the customer's current cellphone number on file to send a DebiCheck notification.
The DebiCheck system ensures that customers are aware and in control of debit orders processed to their bank accounts. It also provides the debiting entity with proof that the customer is aware of these debit orders.
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